Appeal details
Counselvise Citation
[2022] 103 COUNSELVISE.COM (IT) 8264 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 month(s) 5 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-11-2022
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
14-11-2022
Assessment Year
misc
Appeal Filed On
16-05-2022
Judgement Text
ITA No.33/KOL/2022 Assessment Year: 2017-2018 Smt. Nilam Devi Jhunjhunwala 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Sanjay Garg, Judicial Member & Dr. Manish Borad, Accountant Member I.T.A. No. 33/KOL/2022 Assessment Year: 2017-2018 Smt. Nilam Devi Jhunjhunwala,................................................Appellant 107, Old China Bazar Street, 4 th Floor, Room No. 402, Brabourne Road, Kolkata-700001 [PAN:ACWPJ4534C] -Vs.- Income Tax Officer,.....................................................................Respondent Ward-44(3), Kolkata, 3, Government Place (West), Kolkata-700001 Appearances by: Shri Abhishek Bansal, FCA, appeared on behalf of the assessee Md. Ghayasuddin, CIT(DR), appeared on behalf of the Revenue Date of concluding the hearing : 15 th November, 2022 Date of Pronouncing the Order: 22 nd November, 2022 O R D E R Per Sanjay Garg, Judicial Member:- This appeal preferred by the assessee is against the order of ld. Principal Commissioner of Income Tax-13, Kolkata dated 22.12.2021 (hereinafter referred to as ‘PCIT’) for agitating against the exercise of jurisdiction by him under section 263 of the Income Tax Act, 1961, vide which the ld. PCIT quashed the impugned assessment order and directed the ld. Assessing Officer to make the assessment afresh. 2. Brief facts of the case are that the assessee during the assessment year under consideration sold shares, whereupon the assessee earned capital gains. The assessee claimed deduction from tax in respect of the ITA No.33/KOL/2022 Assessment Year: 2017-2018 Smt. Nilam Devi Jhunjhunwala 2 aforesaid capital gains under section 54F of the Income Tax Act on account of investment of the aforesaid capital gains for the purchase/construction of residential house. The case of the assesese was selected for limited scrutiny for verification on the issue “large deduction/exemption claimed in scheduled Capital Gain of ITR and large investment in immovable property”. 2.1. During the assessment proceedings, the assessee furnished the required details and documents to show that the assessee during the year had invested the capital gains for acquisition of residential house and also furnished the copies of receipts of payments made to the builder and also furnished the evidentiary document to show that the value of residential property adopted by the Registering Authority was lower than the purchase consideration. The ld. Assessing Officer considering the aforesaid evidences accepted the claim of the assessee. 3. Thereafter the ld. PCIT invoked his revisionary jurisdiction under section 263 of the Income Tax Act and observed that from the documents furnished by the assessee, the only evidentiary document relating to the set off claimed by the assesese under section 54F was the purchase agreement dated 13.04.2013, which related to assessment year 2014-15. The ld. PCIT further noted that however, the capital gains have been earned by the assessee during the assessment year 2017-18 and therefore, the deduction claimed by the assessee under section 54F was not available to the assessee as the residential house property was not acquired by the assessee within the stipulated period of one year before, or within two years after the date of transfer of original asset. He accordingly held that the order of the ld. Assessing Officer was erroneous and prejudicial to the interest of the revenue. He accordingly set aside the assessment order and remanded the matter back to the file of ld. Assessing Officer for assessment afresh on this issue. ITA No.33/KOL/2022 Assessment Year: 2017-2018 Smt. Nilam Devi Jhunjhunwala 3 4. We have heard the rival contentions and gone through the record carefully. It is pertinent to mention that as per the provision of section 54F, the capital gain arising from the transfer of any long-term capital asset, not being a residential house, and the assessee has, within a period of one year before, or within two years after the date of transfer took place purchased, or has within a period of three years after that date constructed a residential house in India, the capital gain shall be calculated after deduction of the investment made in the aforesaid new asset/residential house. In the case in hand, the assessee had furnished documents before the ld. Assessing Officer claiming that the agreement to purchase a new house was made with the builder in the year 2013, however, the payment to the builder was to be made at different stages of construction i.e. certain payments were made on the completion of RCC work at different levels, external works/windows etc. The ld. Counsel has submitted documents to show that in the instant case, the assessee had invested all the consideration received in the year of receipt itself. The ld. Counsel in this respect has relied upon the copies of the payment receipts to the builder to show that all the payments were made during the year of receipt of capital gains itself. In our view, the assessee in this case is entitled to claim deduction under section 54F of the Income Tax Act, which has rightly been allowed by the ld. Assessing Officer to the assessee. The ld. PCIT in this case has wrongly exercised his jurisdiction under section 263 of the Income Tax Act and has set aside the assessment order without considering the relevant documents on record. The impugned order of the ld. PCIT thus is not sustainable in the eyes of law and the same is hereby quashed. 5. In the result, the appeal of the assessee stands allowed. Order is pronounced in the open court on November 22, 2022 Sd/- Sd/- (Manish Borad) (Sanjay Garg) Accountant Member Judicial Member Kolkata, the 22 nd day of November, 2022 ITA No.33/KOL/2022 Assessment Year: 2017-2018 Smt. Nilam Devi Jhunjhunwala 4 Copies to : (1) Smt. Nilam Devi Jhunjhunwala, 107, Old China Bazar Street, 4 th Floor, Room No. 402, Brabourne Road, Kolkata-700001 (3) Income Tax Officer, Ward-44(3), Kolkata, 3, Government Place (West), Kolkata-700001 (3) Principal Commissioner of Income Tax-13, Kolkata (4) The Departmental Representative (5) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.
AI Insights
The case involves Smt. Nilam Devi Jhunjhunwala, who during the assessment year 2017-2018, sold shares and earned capital gains, claiming a deduction under section 54F of the Income Tax Act for the investment in a residential house. The case was selected for limited scrutiny due to large deductions claimed and significant investments in immovable property. The Assessing Officer initially accepted the assessee's claim based on the documents provided. However, the PCIT later invoked revisionary jurisdiction under section 263, finding the deduction claim erroneous as the property was not acquired within the stipulated period. The Tribunal disagreed with the PCIT's interpretation, supporting the assessee's position and allowing the appeal.
